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News and Events

Latest Report from Aberdeen Validates Xactly Corporation’s Position on the Need for Incentive Compensation Management Applications to Align Employee Performance with Business Goals

Benchmark Report Highlights 88% of Companies Surveyed To Use Incentive Compensation Programs and Applications

SAN JOSE, Calif.—April 5, 2007—Xactly Corporation, (www.xactlycorp.com), the market leader in on-demand sales compensation management and an innovator in on-demand sales performance management, today commented on the findings of a new benchmark report published by Aberdeen, a Harte-Hanks Company (NYSE: HHS) titled, “Incentive Compensation Management: Aligning Employee Performance with Business Goals.” The free Aberdeen report is available today at: http://www.aberdeen.com/link/sponsor.asp?spid=30410673&cid=3951

According to the Aberdeen Human Capital Management (HCM) benchmark report, companies with incentive compensation management (ICM) applications deployed are able to exceed Best in Class performance in rolling out changes or new programs and they are 50% more likely to design, model, test and implement in less than one month. Additionally, the report cited the need to align employee behavior and performance to business goals as the key driver prompting 88% of all companies surveyed to use incentive compensation applications. Aberdeen surveyed 206 companies in order to measure the impact incentive compensation has on the achievement of these goals and the role technology plays in enabling the use of incentive pay to improve employee performance.

“The Aberdeen Incentive Compensation Management benchmark report validates what we’ve been seeing firsthand in the marketplace—that incentive compensation management programs and applications are a strategic initiative among Best in Class mid-market companies to drive and align behaviors that are in synch with corporate objectives,” said Karen Steele, Xactly, vice president of marketing. “Historically, companies have used incentive compensation management almost exclusively with their sales teams. But with the advent of on-demand sales compensation management applications such as Xactly Incent—which provides real-time, Web-based visibility and reporting into compensation—companies are now extending incentive compensation programs to a much wider array of employees in call centers, services, support, marketing and other areas. They realize that the combination of the right incentive programs, delivered via an affordable, powerful and flexible on-demand delivery model like Xactly Incent, can motivate and positively impact employee behavior, and help companies maximize profits.”

“Variable compensation can be one of the most effective levers for aligning employee behavior to corporate business goals,” said Cindy Jutras, Aberdeen, vice president and service director, HCM, ERP & Manufacturing. “While variable compensation is the norm in managing the sales force to drive sales and revenue goals, an increasing number of companies are using incentive compensation to motivate more employees, reward exceptional performance, encourage customer satisfaction, and retain talent in order to meet and exceed corporate goals.”

Xactly Incent is a Web-based solution that enables medium-size enterprises in any industry to improve sales effectiveness and maximize profits. Companies use Xactly Incent to design, implement, manage, audit and optimize sales compensation management at the center of their sales performance management strategy.

According to Steele, prior to the advent of Xactly Incent, companies had to rely on error-prone spreadsheets that lacked any real-time, Web-based visibility to manage incentive  compensation or alternative enterprise solutions which were simply too expensive, time consuming and difficult to implement for all but the largest companies. Xactly Incent's on-demand approach has resulted in companies for the first time being able to realize the power and benefits of an enterprise sales compensation application at a fraction of the cost and avoid all the headaches associated with enterprise applications—lengthy and expensive implementations, large up-front software license and maintenance fees, costly hardware and complex upgrades.

Additional findings in the Aberdeen report include that Best in Class companies are three-times more likely to have implemented an ICM application. These companies achieve better business benefits in terms of growth of revenue and profitability and reduction in overall staff turnover. Based on the findings from this study, Aberdeen makes the following recommendations:

  • Implement a balanced scorecard goal-setting and measurement system for executing the company's strategy.
  • Implement a structured performance management process to give workers feedback on their performance against goals and standards.
  • Implement a robust ICM application and use it to plan and track incentive programs.
  • With an ICM application implemented, allow workers to go online immediately after work performance to learn whether they qualify for a bonus, and to determine the financial impact of their compensation.

Xactly is the first and only company completely focused on delivering a 100-percent on-demand sales compensation management solution. It is also the first and only company to deliver a SAS 70 certified true multi-tenant sales compensation management solution in a SAS 70 certified environment. This single-minded approach enables Xactly to minimize hardware and software infrastructure costs—savings that are then passed on to customers—and accelerate the process by which it delivers new features and functionality.

About Aberdeen Group, a Harte-Hanks Company
Aberdeen isa leading provider of fact-based research and market intelligence that delivers demonstrable results. Having benchmarked more than 30,000 companies in the past two years, Aberdeen is uniquely positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to AberdeenTM for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information—Opportunity—Insight—Engagement—Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen www.aberdeen.com or call 617-723-7890, or to learn more about Harte-Hanks, call 800-456-9748 or go to www.harte-hanks.com.

About Xactly Corporation
Xactly Corporation is the market leader in on-demand sales compensation management and an innovator in on-demand sales performance management. The company’s flagship product, Xactly Incent, enables sales and finance executives to design, implement, manage, audit and optimize sales compensation management programs easily and affordably. Xactly’s solutions automate the process of aggregating data from disparate systems into a secure, hosted repository and enable companies to leverage this business data which is the lifeblood of sales performance management. Xactly helps companies improve operational performance, optimize sales effectiveness, proactively manage risk and compliance and maximize profits. The Xactly family of products is used by sales and finance executives, compensation analysts, sales operations and sales professionals in medium-sized enterprises across a variety of industries. For more information, visit www.xactlycorp.com or call 1-866-GO-XACTLY.

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© 2007 Xactly Corporation. All rights reserved. Xactly, “Incent right. Sell more.,” Xactly Incentive Estimator, Xactly Document Management and Xactly Incent are trademarks or registered trademarks of Xactly Corporation. All other trademarks are the property of their respective owners.

Media Contacts:

Dan Rampe
Xactly Corporation
Tel: 408-200-0610
Email: drampe@xactlycorp.com

Cindy Jutras
Aberdeen Harte-Hanks
Tel: 617-854-5247
Email: cindy.jutras@aberdeen.com

Kristin Reeves
Blanc & Otus Public Relations
Tel: 415-856-5145
Email: kreeves@blancandotus.com